Canada agrees on a potential C$400 million Teck investment for strategic metals production (updated)

Nouveau Monde Graphite

07/07/2026 22:36

Adds Hodgson comments in paragraphs 2, 4, 6
Trail expansion targets strategic metals used in defense, semiconductors, radar systems
Hodgson says fund aims to support projects through volatile global markets
Ottawa, G7 allies are seeking alternatives to China's grip on rare earth supplies
By Divya Rajagopal

    TORONTO, July 7 (Reuters) - The Canadian government announced a potential equity investment in Teck Resources TECKb.TO for up to C$400 million ($281.93 million) to help expand its Trail Operations facility in British Columbia for the production of strategic metals, the country's natural resource ministry said in a statement on Tuesday.

     Tim Hodgson, Canada's natural resource minister, told Reuters that since there is no tradable equity that can be bought, the investment will be in a specific facility in Trail that will act like an equity where its value goes up and down with the production.  
  
The agreement also includes a framework for an offtake agreement from the Canadian government to secure rights for Teck's future production of rare earth metals such as germanium, antimony, and gallium. These metals are used across industries such as infrared optics in semiconductors, defense and radar systems.

    "This investment will allow them to significantly increase their production, which will allow us to share our critical minerals with our alliance partners," Hodgson said.  
  
The government's investment will be part of Teck's plans to invest up to C$850 million to sustain and enhance critical minerals processing capacity at Trail Operations. 

    Hodgson explained in a separate statement that the rationale for providing capital in a mining giant like Teck is that it gives companies the certainty they need to make major investments in Canadian critical mineral mining and processing projects, even when global markets are volatile. 
  

    Canada, along with its G7 partners, has been looking to stockpile a range of strategic metals, which are currently controlled by China. Earlier this year, Canada announced an offtake agreement to buy graphite from Montreal-based Nouveau Monde Graphite at a predetermined price and sell it to its allies.
The G7 countries over the last two years have proposed several measures to tackle the dominance of China in rare earths — difficult-to-extract metals used in cell phones, EVs and high-tech weapons. China currently controls over 90% of these metals and imposed export controls last year in retaliation ​for U.S. tariffs.  
Teck Resources, which announced its merger with Anglo American last year, is the largest producer of germanium in North America. 
($1 = 1.4188 Canadian dollars)

(Reporting by Divya Rajagopal in Toronto; Editing by Andrea Ricci and Mark Porter)
((divya.rajagopal@thomsonreuters.com,  Phone- +16472628751))